BILL NUMBER: SB 586	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Costa

                        FEBRUARY 23, 1999

   An act to amend Sections 2550, 2561, 2562, 2563, 2566, and 14054
of, to amend and repeal Section 2551 of, and to add Section 2567 to,
the Education Code, relating to education finance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 586, as introduced, Costa.  School finance: equalization
adjustments.
   (1) Existing law requires the Superintendent of Public Instruction
to make certain computations to determine the amount to be allocated
for direct services and other purposes provided by county
superintendents of schools and to determine each county
superintendent's revenue limit for county superintendent
responsibilities and direct services.  Existing law sets forth a
method for equalizing the revenue limits for county offices of
education for the 1995-96 fiscal year.  Existing law defines the term
"general purpose revenues" for the purposes of this method.
   This bill would repeal, as of July 1, 2000, the existing formulas
for determining each county superintendent's revenue limit for county
superintendent responsibilities and services.  The bill would delete
the term "general purpose revenues" and replace it with the term
"core revenues." The bill would require the Superintendent of Public
Instruction to apportion equalization funding for the 1999-2000
fiscal year to certain county offices of education in prescribed
amounts.  The bill would make various conforming changes to existing
provisions of law, including changes to the computations to be made
by the Superintendent of Public Instruction to determine the amounts
to be allocated for direct and other services provided by county
superintendents of schools.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 2550 of the Education Code is amended to read:

   2550.  For each fiscal year, the Superintendent of Public
Instruction shall make the following computations to determine the
amount to be allocated for direct services and other purposes
provided by county superintendents of schools:
   (a) For programs operated pursuant to subdivision (a) of Section
14054, the Superintendent of Public Instruction shall:
   (1) Determine the allowances that county superintendents received
per unit of average daily attendance in the prior fiscal year.  The
Superintendent of Public Instruction shall increase each amount by a
percentage equal to the inflation allowance calculated for the
current fiscal year pursuant to Section 2557.
   (2) Multiply each amount determined in paragraph (1) by the actual
number of units of average daily attendance in the prior fiscal year
for programs maintained by each county superintendent.  For purposes
of this paragraph, the number of units of average daily attendance
shall include only  units generated by  elementary districts
with less than 901 units of average daily attendance, high school
districts with less than 301 units of average daily attendance, and
unified school districts with less than 1,501 units of average daily
attendance within each county superintendent's jurisdiction.
   (b) For programs operated pursuant to subdivision (b) of Section
14054, the Superintendent of Public Instruction shall:
   (1) Determine the  allowances that county superintendents
received per unit of average daily attendance in the prior fiscal
year for programs for kindergarten and grades 1 to 12, inclusive.
The Superintendent of Public Instruction shall increase each amount
  rate calculated for each county office of education
pursuant to subdivision (b) of Section 2567 and increase each rate
 by a percentage equal to the inflation allowance calculated in
Section 2557.
   (2) Multiply each amount determined in paragraph (1) by the
estimated units of average daily attendance in the current fiscal
year for programs for kindergarten and grades 1 to 12, inclusive,
maintained by each county superintendent.  For the purposes of this
paragraph, the estimate shall include only the total units of average
daily attendance credited to all elementary, high school, and
unified school districts within each county superintendent's
jurisdiction and to the county superintendent.
  SEC. 2.  Section 2551 of the Education Code is amended to read:
   2551.  The Superintendent of Public Instruction shall perform the
computations prescribed in this section to determine each county
superintendent's revenue limit for county superintendent
responsibilities and district services:
   (a) For the 1981-82 fiscal year, the superintendent shall add to
the revenue limit amount computed pursuant to subdivision (a) of
Section 2551 for the 1980-81 fiscal year, the revenue limit amount
computed pursuant to Section 2552 for the 1980-81 fiscal year reduced
by 55.9 percent.  This adjusted revenue limit shall then be
increased by the inflation allowance calculated in subdivision (a) of
Section 2557.
   (b) For the 1981-82 fiscal year and for each fiscal year
thereafter, the Superintendent of Public Instruction shall increase
the amount calculated in subdivision (a) by the amounts computed
according to Sections 2507.5 and 2510.
   (c) The total amounts for each program calculated pursuant to
subdivision (a) may be used for any of the services or programs
specified in this section, or Section 2552 as it read prior to the
enactment of this act.  
   (d) This section shall become inoperative on July 1, 1999, and as
of January 1, 2000, is repealed, unless a later enacted statute, that
becomes operative on or before January 1, 2000, deletes or extends
the dates on which it becomes inoperative and is repealed. 
  SEC. 3.  Section 2561 of the Education Code is amended to read:
   2561.  For purposes of this article, the following definitions
shall apply:
   (a) "Countywide ADA" means the aggregate number of annual units of
regular average daily attendance for the fiscal year in all school
districts within the county.
   (b) "Services ADA" means the countywide ADA plus 12.5 percent of
the number of full-time equivalent students in community college
districts within the county for which the county office of education
provides fiscal and other services.
   (c) "  General purpose   Core  revenues"
means the sum of the following amounts received by the county office
of education in the fiscal year:
   (1) Apportionments received for purposes of subdivision (b) of
Section 2550 and for purposes of county superintendent office
operations and capital outlay.
   (2) Any financial support provided to the county office of
education from the general fund of the county, including, but not
limited to, salary and benefits expenditures for county office of
education staff paid for by the county, other expenditures to support
the operations of the county office of education paid for the
county, revenues transferred from the county general fund to the
county office of education, and any other direct or indirect support
provided to the county office of education by the county general
fund.  As a condition of receipt of funds pursuant to this article,
the county superintendent of schools shall certify the amount of this
financial support from the county general fund to the Superintendent
of Public Instruction in a manner determined by the Superintendent
of Public Instruction.
  SEC. 4.  Section 2562 of the Education Code is amended to read:
   2562.  For purposes of  this article  
Section 2563  , the following classes of counties shall apply:
   (a) Class 1:  Counties with 1994-95 countywide ADA of more than
500,000.
   (b) Class 2:  Counties with 1994-95 countywide ADA of at least
180,000 but less than 500,000.
   (c) Class 3:  Counties with 1994-95 countywide ADA of at least
60,000 but less than 180,000.
   (d) Class 4:  Counties with 1994-95 countywide ADA of at least
30,000 but less than 60,000.
   (e) Class 5:  Counties with 1994-95 countywide ADA of at least
14,000 but less than 30,000.
   (f) Class 6:  Counties with 1994-95 countywide ADA of at least
7,000 but less than 14,000.
   (g) Class 7:  Counties with 1994-95 countywide ADA of less than
7,000.
  SEC. 5.  Section 2563 of the Education Code is amended to read:
   2563.  The Superintendent of Public Instruction shall make the
following calculations for the 1995-96 fiscal year:
   (a) For each county office of education, divide its 1994-95
 general purpose   core  revenues by its
1994-95 services ADA.
   (b) For each class of counties, except  Class 
 class  1 counties, divide the sum of the 1994-95 
general purpose   core  revenues for all of the
county offices of education in that class by the sum of the services
ADA for all of the counties in that class, and multiply that quotient
by 0.88.  For  Class   class  1 counties,
the amount shall be eighteen dollars and 98 cents ($18.98).
   (c) For each county office of education, subtract the amount
determined pursuant to subdivision (a) from the amount determined
pursuant to subdivision (b) of the class of counties of which it is a
member.  If this difference is less than zero, it shall be deemed to
be zero.
   (d) For each county office of education, multiply the amount
determined pursuant to subdivision (c) by its 1994-95 services ADA.
   (e) Divide five million dollars ($5,000,000) by the statewide sum
of the amounts determined pursuant to subdivision (d) and, for each
county office of education, multiply that quotient by  its
  the  amount determined  for it  pursuant
to subdivision (d).
  SEC. 6.  Section 2566 of the Education Code is amended to read:
   2566.  (a) The total amount apportioned  for the 1995-96
fiscal year  pursuant to this article shall not exceed 
5   five  million dollars ($5,000,000).
   (b) This article shall only become operative if the Director of
Finance certifies that a settlement agreement in California Teachers
Association v.  Gould (Sacramento County Superior Court Case CV
373415) is effective.  No funds shall be disbursed under this article
before August 1, 1996.
   (c) For the purpose of making the computations required by Section
8 of Article XVI of the California Constitution, the appropriations
made by this paragraph for the 1995-96 fiscal year shall be deemed to
be "General Fund revenues appropriated to school districts," as
defined in subdivision (c) of Section 41202 for the 1995-96 fiscal
year and be included within the "total allocations to school
districts and community college districts from General Fund proceeds
of taxes appropriated pursuant to Article XIIIB," as defined in
subdivision (e) of Section 41202 for that fiscal year.
  SEC. 7.  Section 2567 is added to the Education Code, to read:
   2567.  (a) The Superintendent of Public Instruction shall
apportion equalization funding for the 1999-2000 fiscal year to the
following county offices of education, adjusted for the deficit
factor pursuant to Section 2558.45, pursuant to the following
schedule:




          Alameda ..........................     $655,915
          Butte ............................      122,621
          Calaveras ........................      113,407
          Colusa ...........................      111,661
          Contra Costa .....................    1,635,257
          El Dorado ........................      134,690
          Fresno ...........................    2,524,656
          Glenn ............................       39,294
          Humboldt .........................      144,123
          Imperial .........................      613,130
          Kern .............................      133,470
          Kings ............................      306,758
          Lassen ...........................       55,479
          Los Angeles ......................    6,805,186
          Madera ...........................      284,994
          Merced ...........................      303,003
          Nevada ...........................      159,019
          Orange ...........................    1,632,568
          Placer ...........................        2,771
          Sacramento .......................    2,293,851
          San Benito .......................      129,193
          San Bernardino ...................    2,346,446
          San Joaquin ......................    1,317,689
          Shasta ...........................      214,714
          Solano ...........................    1,087,058
          Stanislaus .......................    1,265,200
          Sutter ...........................      305,535
          Tehama ...........................      135,315
          Trinity ..........................       17,483
          Tulare ...........................    1,609,231
          Tuolumne .........................       94,236
          Ventura ..........................      343,369
          Yolo .............................      144,922
          Yuba .............................      138,497
                                               __________
                                             $ 27,220,744

   (b) (1) For purposes of paragraph (1) of subdivision (b) of
Section 2550, the Superintendent of Public Instruction shall divide
the amount of equalization aid received by each county office of
education pursuant to subdivision (a) by its 1998-99 countywide ADA
and add the resulting quotient to the 1998-99 core revenue rate per
unit of average daily attendance.  For purposes of this calculation,
the core revenue rate per unit of average daily attendance is
determined by dividing the apportionments set forth in paragraph (1)
of subdivision (c) of Section 2561 by the 1998-99 countywide ADA.
   (2) For purposes of paragraph (1) of subdivision (b) of Section
2550, for county offices of education not listed in subdivision (a),
the 1998-99 core revenue rate per unit of average daily attendance is
determined by dividing the apportionments set forth in paragraph (1)
of subdivision (c) of Section 2561 by the 1998-99 countywide ADA.
  SEC. 8.  Section 14054 of the Education Code is amended to read:
   14054.  The Superintendent of Public Instruction shall  ,
 during each fiscal year  allow   ,
allocate  to the county school service fund of each county from
the State School Fund  such amounts as   an
amount that  the budget submitted by the county superintendent
of schools and approved by the Superintendent of Public Instruction,
under Section 14050, shows is necessary, but:
   (a) The total amount  allowed   allocated
 by the Superintendent of Public Instruction under this section
to all county school service funds for supervision of instruction and
health, attendance, and guidance services pursuant to 
Sections 1730 to 1762, inclusive   Article 4 (commencing
with Section 1730) of, Article 5 (commencing with Section 1740) of,
Article 6 (commencing with Section 1750) of, and Article 7
(commencing with Section 1760) of, Chapter 6 of Part 2  , for
pupils in elementary school districts which  ,  during the
next preceding fiscal year  ,  had less than 901 units of
average daily attendance, in high school districts which, during the
preceding year  ,  had less than 301 units of average daily
attendance, and in unified school districts  ,  which during
the next preceding fiscal year  ,  had less than 1,501
units of average daily attendance  ,  shall not exceed the
sum provided by law for  such   this 
purpose or the amounts shown necessary by  such 
 those  budgets, for  such   that 
purpose, whichever is the lesser.
   (b) The total amount  allowed   allocated
 by the Superintendent of Public Instruction under this section
to all county school service funds for all  other purposes
  core revenues  shall not exceed the sum provided
by law for  such   those  purposes or the
amounts shown necessary by  such   those 
budgets, whichever is the lesser.